Tag: Real Estate Development Industry

A Fortune Global 500 Refines Strategy to Unleash Growth

Diversified Fortune 500
Unleashes Growth
With Tailored Strategies for Cash Cows, Tigers, and the Middle

We helped our diversified conglomerate client find new business opportunities, define strategies for the holding company’s smaller businesses, and clarify the strategic and operational role of the center.

P&C Helps This Fortune 500 Conglomerate Evaluate Its Portfolio of Companies to Align with Its Profitability Targets

Our client owned many businesses in sectors that included industrial equipment, automotive components, major domestic appliances, commercial financial services, energy, and real estate development, among others. The company had diversified into several non-related businesses but had failed to achieve its profitability targets.

Its board of directors set a minimum return for all the companies in the portfolio, but many of them fell below their goals. P&C was brought in to help:

  • Find a new business opportunity that could eventually replace the reliable cash generator (cash cows)
  • Define strategies for the smaller businesses (tigers) so that they would either achieve their value creation objectives or be divested
  • Clarify the strategic and operational role of the center to achieve overall growth

P&C Created a Framework for Each of 4 Challenges

Challenge I

Growth in New Businesses

Identify 2-4 profitable business opportunities similar in size to current cash cows

Challenge II

Sustainability of “Cash Cows”

Define strategies to continue milking businesses through turmoil and changes in industry

Challenge III

Strategy for “Tiger Businesses”

Programs to find strategic/operational improvements or divest money-losing businesses

Challenge IV

Improve Role of Center

Articulation of new strategy and corporate role

P&C Focused on Product Line Profitability to Determine Divestiture Targets

P&C’s first priority was to redesign the money-losing businesses, or tigers. Rather than divesting whole companies, we recommended that our client divest product lines. We also delivered detailed business plans for three new endeavors and a new corporate role.

P&C’s program resulted in a dramatic increase in ROIC—from 13% to 25% over two years. Our client is now working with us on adjacent business opportunities that we identified.

*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.

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Reinventing a Global Hospitality Leader

Our work with this client has spanned the gamut from business model redefinition to operational change and social responsibility commitment; this video highlights key changes including the transition to an asset-light lifestyle platform, the expansion to new geographies and lines of business, process responses to COVID-19, and community support endeavors.

Building a Property Management Platform

The convenient bundling of amenities and services can create a powerful and distinctive value proposition for residents along with attractive returns to property developers; here, our client delivers integrated services through a seamless digital portal.

Orchestrating a Seamless Launch to Residential Journeys

For property developers beginning relationships with new residents, the start of the customer journey is often fraught with challenges associated with home handover; here, we worked with this client to conveniently orchestrate a variety of different physical and administrative processes to provide a superlative initial experience.

On-Demand Property Issue Tracking

Beyond process initiation, digital reinvention enables feedback loops such as on-demand issue tracking; here, our property development client enables residents to check the real-time status of their requests.

Streamlining Property Service Requests

Digital interfaces and workflows can benefit all participants; in this example, our client’s property service request capability enhances convenience for residents, reduces back-office administration, and enables visibility to proactively address issues.

A Global Luxury Brand Honors Its 120-Year Legacy

Our work with clients typically spans multiple domains. With this client, for example, our efforts broadly encompass brand development, marketing, merchandising, digital reinvention, omnichannel retail, customer experience, social responsibility, and international expansion.

Launching a New Luxury Destination in Doha

P&C designs and implements integrated public relations and marketing campaigns in tandem with major launches. This media dinner in Doha generated immediate awareness and positive press for a luxury retail client entering a new market.

Discover Mandarin Oriental, Paris

We understand how to cater to affluent consumers. This segment for the Mandarin Oriental, Paris, highlights the atmosphere, services, and amenities available to its guests both on premise and in the surrounding locale.

Cargolux – CV Jumbo

P&C’s exposure to global logistics product development includes a number of specialized applications, such as the jumbo lift capability with this client.

Global Diversified Conglomerate Untethers Its Holdings to Unleash Growth

Proven Results

GlobalCo*, a diverse conglomerate with operations in 118 countries and over 160,000 employees worldwide, recognized that some of its portfolio companies were missing their profitability targets among other performance issues. The company sought P&C’s guidance to identify and solve the performance and profitability issues at its holding companies.

At a Glance

The Situation

GlobalCo, a diverse conglomerate with operations on five continents, owned businesses in multiple industries including logistics, biopharmaceuticals, commercial real estate development, energy and exploration, financial services, technology infrastructure, and luxury retail. GlobalCo’s board of directors had set a minimum rate of return for invested capital for their portfolio companies, but some fell below their goals. In addition, given the rapidly growing size and scale of some its portfolio companies, GlobalCo sought opportunities to share infrastructure across the enterprise to leverage its economies of scale and reduce duplicative costs. After evaluating and eliminating complex proposed solutions with unclear outcomes from multiple global consultancies, P&C was engaged to address the following challenges:

  • Identify which portfolio businesses have high potential for growth and scalability and those which need to be divested.
  • Identify issues tethering performance at high potential businesses and define strategies to boost performance at each.
  • Identify any low-hanging M&A opportunities for inorganic growth at high potential businesses.
  • Define a strategy and approach for the creation of a shared services organization to deliver common business services across the enterprise to include the following functions: finance, accounting, treasury, audit, technology infrastructure, human resources, risk management, and corporate real estate.

Our Approach

P&C worked closely with GlobalCo’s key stakeholders – C-level leaders and stakeholders from across the company and board of directors – to gather, consolidate, and prioritize the expected outcomes of the solutions sought.

With input from key client stakeholders, we created specific frameworks to address each challenge:

Our Recommendations

P&C’s top priority was to identify which of the underperforming businesses had potential for substantial growth and which needed to be divested. Concurrently, we wanted to identify potential opportunities to improve businesses already performing well along with potential M&A opportunities to scale those businesses to a new level.

The Results

GlobalCo divested all low-potential, non-performing businesses, made two strategic acquisitions valued over $7 billion, and created a state-of-the-art shared services organization which reduced $375 million in annual costs across all of its businesses. In addition, return on operating income increased from 12 to 27 percent over a 2-year period across all businesses.

*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.

Top 3 US Residential REIT Embraces Digital to Reduce Complexity & Advance Growth

Proven Results

REITCo*, one of the largest multi-family REITs with over 120 luxury apartment communities throughout the U.S., had a stellar reputation with its customers and investors. Its competitors had grown rapidly via acquisitions and were now extending their reach into REITCo’s key markets. The company sought P&C’s guidance to transform its business, internally, to better serve its customers and prepare for substantial growth via acquisitions.

At a Glance

The Situation

Although the multi-family REIT industry, as a whole, was not known for its innovative use of enterprise technologies including application software, customer-facing mobile and web solutions, and adoption of IoT/Smart building technology, senior leaders at REITCo had a larger vision in mind.

The company’s C-level leaders asked P&C for guidance on the following topics:

  • How do we effectively harness technology to both streamline our business AND differentiate ourselves from our top competitors?
  • How can we use technology to better engage our prospective and existing customers–both of whom are mostly higher-income, college-educated Millennials and GenX’ers with no children?
  • Can we make the investments we need to make–in technology, process innovation, and elsewhere–to create “acquisition bandwidth” (the ability to integrate acquired entities faster and more effectively)?
  • Can we successfully do all that we have identified in 2 years?

Our Approach

P&C created a 4-step approach to address the opportunity and overall business objectives.

Our Recommendations

P&C recommended 5 major components vital to meeting REITCo’s objectives:

  • Replace the existing and costly collection of 14+ disintegrated legacy enterprise applications with a single product suite from one vendor.
    • The accounting application was purchased and implemented 18 years earlier.
      • To compensate for its lack of modern capabilities, 7 other applications were purchased and bolted on over time to enable document scanning for accounts payable, electronic workflow, expense reporting, CapEx, vendor portal, risk management, and budget & forecasting.
      • Combined, these applications had created a company-wide epidemic of process complexity which often required both manual and semi-manual processes to reconcile and complete.
    • The prospective and current customer-facing applications were comprised of a compilation of various other third-party solutions which did not integrate to the back-office systems nor provided mobile solutions to the company’s sales professionals, service staff, or customers.
  • Revamp the existing company website and add the current set of functionality that prospective and existing customers expect.
    • The existing company website and resident portals were dated and they did not provide an appealing aesthetic to REITCo’s target customers. In addition, the existing website functionality lacked the full suite of online apartment home shopping, qualification, and move-in/move-out automation capabilities that their target market consumers expected (e.g. rental application, real-time decisioning, apartment unit reservation, digital tours and floor plans, move-in scheduling, deposit payment, etc.).
  • Develop and implement a social media strategy to recruit, engage, and retain prospective and existing customers and employees. 
    • Like many companies, REITCo had taken a cautious and gradual approach toward social media. Recruiting and retaining new employees and customers could benefit substantially from an active, focused, and engaged multi-channel social media presence.
      • Build a corporate presence on Facebook, LinkedIn, and Instagram
      • Harness Facebook and Instagram to build and nurture a sense of community for customers at each of the properties and company-wide. Use Facebook’s powerful marketing capabilities to target and engage prospective customers.
      • Use LinkedIn Recruiter to precisely source talent–reducing the reliance and cost associated with external recruiters while gaining visibility and mindshare on the platform that likely hosts many existing and prospective customers.
      • Create and implement a social media policy to guide employees’ engagement online across the company’s new social media properties.
  • Add the talented resources needed in IT for the success of the Digital Reinvention Program. 
    • The IT team was highly dedicated and talented, but the team was understaffed and stretched thin. Additional talented resources were needed to give key existing resources the bandwidth necessary for the new initiatives.
  • Implement a change management program and governance process to guide the entire organization through the Digital Reinvention Program.

The Results

REITCo’s incredibly fast-paced deployment of its Digital Reinvention Program was a tremendous success. The legacy enterprise systems were replaced with a world-class product suite from one vendor. Concurrently, the new company website and its expansive prospective and existing customer portals were designed, developed, and launched. The unified corporate social media presence on Facebook, LinkedIn, and Instagram were also designed, developed, and launched.

P&C led the vendor selection process for the company’s new enterprise application suite–using its partner ecosystem to engage C-level executives at each of the global software companies evaluated. This was to ensure REITCo had the highest level access to secure the most effective pricing and contractual negotiation outcomes.

P&C also led the design, development, and launch of REITCo’s new website, digital customer portals, and social media platforms.

REITCo’s Digital Reinvention program delivered impressive results on the three key measures the company’s leaders chose for the initiative: Same Store Sales (9% higher), Same Store Net Operating Income (12% higher), and total company revenues (11% higher excluding asset sales).

*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.

Turkish Aviation Academy

In tandem with this client’s flight training center, P&C also developed and launched their Aviation Academy to imbue their personnel with state-of-the-art skills.

Linking Landmarks with Emotional Appeal

Art at its best can both resonate and integrate; here, we worked with this property development client responsible for the Burj Khalifa and The Dubai Mall to unveil a “Love Me” commission on Valentine’s Day that playfully reflects both those landmarks.

Connecting and Inspiring with Art

In a massive mixed use development such as Downtown Dubai, art installations can both connect diverse attractions and enhance the ambience of the overall environment; this innovative project accomplishes both those objectives.

A Global Luxury Brand Honors Its 120-Year History – en français

Notre travail avec les clients couvre généralement plusieurs domaines. Avec les Galeries Lafayette, par exemple, nos efforts englobent largement le développement de la marque, le marketing, le merchandising, la réinvention numérique, le commerce omnicanal, l’expérience client, la responsabilité sociale et l’expansion internationale.

Istanbul’s New Fashion Destination

Our international expansion engagements combine the brand equity of clients with the unique needs and perspectives of each market. Here, we introduced a globally recognized luxury retailing client to Turkey.

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